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Standard XI
Accountancy
Error of Principles
Error of Prin...
Question

Error of Principle arises when?


A

Proper distinction is not made between Capital and Revenues

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B

There is an omission of transaction

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C

Wrong amounts are entered in the ledgers

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D

Transaction are entered in the wrong Ledgers

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Solution

The correct option is A

Proper distinction is not made between Capital and Revenues


Error of Principle arises when, proper distinction is not made between Capital and Revenues.


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Q. When any particular transaction has not at all been entered in the journal or in the book of original entry, it cannot be posted into the ledger at all, such errors are known as ___________.
Q. When any particular transaction has not at all been entered in the journal or in the book of original entry, it cannot be posted into the ledger at all, such error are known as________________.
Q. Enter the following transactions in proper Subsidiary Books and post them into Ledger :−

2017
March 2 Purchased from Navrang Traders for ₹ 8,300
3 Sold goods to Rohan for ₹ 3,200
5 Bought of Ruchi Traders for ₹ 12,100
8 Rohan returns the goods for ₹ 600
10 Purchased goods from Jaipur Stores of the list price of ₹ 15,400 less 5% Trade Discount
12 Sold goods to Arun Traders for ₹ 18,000 less 15% Trade Discount
12 Bought of Amit Traders for ₹ 10,000
16 Purchased Machinery from Kirloskar Ltd. ₹ 20,000
18 Returned goods to Jaipur Stores for ₹ 800 less 5% Trade Discount.
19 Arun Traders returned goods for ₹ 3,000, less 15% Trade Discount
20 Sales to Kalpna & Co. for ₹ 14,700
22 Purchased goods from Navrang Traders ₹ 25,000
25 Returns outward to Navrang Traders for ₹ 1,200
26 Sales to Rupa Traders for ₹ 10,000 less 10% Trade Discount
29 Returns inward from Kalpana & Co. for ₹ 2,000
Q. State whether the following statements are ‘True or False”.

1) Ledger is known as the book of original entry.
2) Narration is not necessary in ledger.
3) All accounts are closed down at the end of the accounting year.
4) Recording of a transaction in Journal is called posting.
5) Balance of personal account is brought down for the next year.
6) All transactions are recorded directly in ledger.
7) Ledger Folio and index is necessary for ledger.
8) Ledger posting is not necessary for Journal Proper.
9) Ledger Folio is recorded in Journal.
10) Ledger posting is made before passing Journal entry.
Q. All transaction are recorded directly in ledger.
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